Saving tips for your child's first vehicle.
Your teen has probably been dreaming about driving as long as you’ve been dreading it. But now the time has come – your teen has earned their license, and they’re ready to get their own car to embrace the freedom of the open road.
Here are some helpful tips for funding your teen’s first car.
Start with a budget
A car, even a used one, can be a big expense. It’s crucial for your teen to have realistic expectations about what they can afford, with or without your help, and to set up a budget that accounts for all the costs. Beyond the sticker price, there are insurance, loan payments (if applicable), taxes, registration fees, gas and maintenance to consider. Helping them understand how to save for such a big purchase will set them up for success in achieving their car ownership goal.
New vs. Used
While a brand-new car may be the dream for most teens, it’s not always realistic. A used car can be a more affordable option, though it often comes with higher maintenance costs.
If you and your teen aren’t able to cover the cost upfront, look into financing options. Be sure to shop around for the best rates and carefully consider whether buying or leasing makes the most sense.
Help Them Understand the Process
Teaching your teen how to budget, compare cars, review insurance policies, and explore financing options is crucial in helping them navigate the process of buying and owning their first car. With a little guidance, you can make their dream of car ownership a reality.
Financing for Your Teen’s First Car
At Five Star Bank, we offer auto loan options designed to meet your family’s needs. Whether you’re helping your teen purchase their first car or financing a new vehicle for yourself, our team is here to guide you every step of the way. Contact us today to learn more and get started.
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